Your Facebook Friends Credit Scores Can Affect Yours
Tech startups are using social data to determine if you get a loan depending on the length of your credit history. In the past lenders relied solely on credit scores and payments history. They'd stay clear of people who have little or no crdit history.
Now financial lending companies are finding that social connections can be a good indicator if you're getting credit from them or not.
One company, Lenddo, determines if your friends on Facebook with someone who has a poor credit history then that count AGAINST you.
"It turns out humans are really good at knowing who is trustworthy and reliable in their community," said Jeff Stewart, a co-founder and CEO of Lenddo. "What's new is that we're now able to measure through massive computing power."